Under the latest New York Department of Financial Services guidance, custodians are required to "separately account for and segregate customer virtual currency from the corporate assets."
Core Scientific faces allegations of "securities fraud and other unlawful practices" that led to its share price tumbling, ultimately forcing it to file for bankruptcy.
Core Scientific has been in dispute with the bankrupt Celsius Network over the mining rigs, with the lender owing $7.8 million to the bankrupt BTC miner since November.
Pre-bankruptcy, Celsius held $4.2 billion for 600,000 users in Earn accounts, digital assets which the judge ruled it legally owns and can sell to fund operations.
Among Mashinsky's many sins, chief among them is his promise to prospective investors of high yields with minimal risk reassuring that their digital assets would be "as safe as money in a bank."
2022 witnessed the dashing dreams of BTC loyalists who called for the price to hit $100k, given their infallible plan to get rich by HODLing, while the Defi crowd got their time in the sun.
Celsius set the initial deadline to January 3 but is now seeking to push it to early February, with those who fail to file risking losing out on distribution.
The defunct digital asset lender will only reopen withdrawals for Wallet Accounts, and just as with Celsius, users with interest-earning accounts won’t benefit.
The $44 million was held in its custodial accounts, which, according to its Terms and Conditions, wasn’t under its ownership and interest-bearing account holders have been left out to dry.
Customers who fail to file their claims by January 3 may not be eligible for any distribution from the case even as new reports point blame on Celsius custody.
Bitcoin influencer and historian Kurt Wuckert Jr. joined Lisa Kennedy on FOX Business to talk about the recent FTX collapse, Sam Bankman-Fried, and what it means for the industry at large.